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Rishi Sunak is set to become prime minister. His first task will be to appoint a new cabinet.

It will not be an easy job following the past few months of infighting during Boris Johnson’s premiership, then the brutal summer Tory leadership campaign, followed by MPs in the past few days coming out in favour of Mr Johnson before switching allegiance when he dropped out.

Rishi Sunak to be PM after Penny Mordaunt drops out – follow live updates

Sky News looks at the possible candidates for the major cabinet positions.

British Chancellor of the Exchequer Jeremy Hunt walks outside Downing Street in London, Britain October 20, 2022. REUTERS/Henry Nicholls

Chancellor

Jeremy Hunt

The current chancellor could keep his job under Mr Sunak, having reversed the majority of Liz Truss’s mini-budget – policies Mr Sunak warned would be detrimental to the economy.

Seen as a steady hand, keeping Mr Hunt could be an attempt to keep the markets calm.

However, Mr Sunak made no promises to keep Mr Hunt as his right-hand man. Penny Mordaunt did.

Former British Health Secretary Sajid Javid leaves his home in London, Britain July 6, 2022. REUTERS/Maja Smiejkowska

Sajid Javid

It was Sajid Javid who quit Boris Johnson’s cabinet just minutes before Mr Sunak earlier this year, which led to many more resignations and ultimately Mr Johnson’s downfall.

He was also Mr Sunak’s predecessor as chancellor, and was Mr Sunak’s boss in the Treasury, so has the experience the new PM would be looking for.

Mr Javid did support Ms Truss in the last leadership campaign and implied Mr Sunak was “sleepwalking” the UK “into a big-state, high-tax, low-growth, social democratic model”.

However, having him on board could be seen as a way of reaching out across the party.

Britain's Secretary of State for International Trade Kemi Badenoch walks next to the campaign headquarters of Conservative MP Rishi Sunak, in London, Britain, October 24, 2022. REUTERS/Hannah McKay

Kemi Badenoch

Former leadership rival and cabinet colleague Kemi Badenoch threw her weight behind Mr Sunak on Sunday.

Seen as a rising star on the right of the Conservative Party, appointing the former banker and exchequer secretary to the Treasury would appease those on the right.

Mel Stride

A very loyal Sunak supporter, who ran his leadership campaign both times, Mel Stride could be rewarded with a cabinet position.

If not chancellor, then he could get a top job in the Treasury such as chief secretary to the Treasury, or he could get his old job under Theresa May back – financial secretary to the Treasury.

Penny Mordaunt at the launch of her campaign to be Conservative Party leader and Prime Minister, at the Cinnamon Club, in Westminster, London. Picture date: Wednesday July 13, 2022.

Foreign Secretary

Penny Mordaunt

Mr Sunak could give his leadership rival one of the great positions of state in a show of unity following months of divisive politics within the Conservative Party.

Penny Mordaunt, a Navy reservist, served as international development secretary and defence secretary under former PM Theresa May so has the right CV to be foreign secretary.

Tom Tugendhat

Another former leadership rival, Tom Tugendhat was chair of the powerful Foreign Affairs Select Committee for five years until last month, when he was made security minister by Ms Truss.

He also served in Iraq and Afghanistan with the Territorial Army and helped set up the National Security Council of Afghanistan for the Foreign Office before becoming an MP.

Strong on foreign policy, he is seen as a competent pair of hands to take on the foreign secretary role from James Cleverly.

Foreign Secretary James Cleverly speaks to the media ahead of the Conservative Party annual conference at the International Convention Centre in Birmingham. Picture date: Wednesday October 5, 2022.

James Cleverly

Despite initially coming out in support of Mr Johnson, the current foreign secretary could remain in place under Mr Sunak.

Keeping him in post would help with continuity in an area where it is needed, given the Ukraine War and increasing threat from China.

His experience as minister for the Middle East, North Africa and North America, followed by minister for Europe and North America means he is a steady hand.

Grant Shapps speaking to the media ahead of the Conservative Party annual conference at the International Convention Centre in Birmingham. Picture date: Monday October 3, 2022.

Home Secretary

Grant Shapps

Mr Sunak could keep the current home secretary in post as a reward for his loyal support during the last two leadership races.

Grant Shapps replaced Suella Braverman as home secretary just last week after Ms Truss brought him in to steady the ship despite criticising her plan to cut the top rate of income tax.

An experienced cabinet member, keeping him as home secretary could be another attempt at maintaining continuity.

Sajid Javid

The former cabinet minister and close friend of Mr Sunak could take up his role as home secretary yet again, having previously served briefly under Ms May.

Suella Braverman

An unlikely candidate after she quit as home secretary last week, but Mr Sunak could bring Ms Braverman back in after she publicly supported him.

British Minister without Portfolio Oliver Dowden arrives on Downing Street, in London, Britain May 25, 2022. REUTERS/John Sibley

Deputy PM

Oliver Dowden

The former co-chairman of the Conservative Party and one of Mr Sunak’s closest friends in politics has been helping run Mr Sunak’s campaign so could be well-rewarded with a spot next to Mr Sunak.

He is popular among MPs and also has cabinet experience so could be seen as good support for Mr Sunak.

Before becoming an MP he was David Cameron’s chief of staff so is well-versed in gathering support from across the party.

British Deputy Prime Minister Dominic Raab gets out of a car outside Downing Street in London, Britain, July 12, 2022. REUTERS/Toby Melville

Dominic Raab

A strong backer of Mr Sunak, Mr Raab came out early in support of the former chancellor and has defended him over the summer against accusations Mr Sunak betrayed Mr Johnson.

He could well be rewarded by taking back his job as deputy PM, which he held under Mr Johnson.

Jeremy Hunt

If he does not stay as chancellor, Mr Sunak could make Mr Hunt his deputy PM as a reward for supporting him.

The pair have similar views on the economy so he would be seen as a good person to help steer the party.

Defence Secretary Ben Wallace rules himself out of the Conservative leadership, supporting Boris Johnson

Defence Secretary

Ben Wallace

One of the few cabinet secretaries to keep their job during both Mr Johnson and Ms Truss’s premierships, Ben Wallace is seen as key to helping the situation in Ukraine.

Mr Sunak will likely want to keep the former Army captain as defence secretary, however the new PM did not commit to spending 3% of GDP on defence by 2030.

Mr Wallace had said that was a red line for him so if Mr Sunak fails to commit to that now, Mr Wallace could quit.

Penny Mordaunt

In an attempt to show unity and stability across government, Mr Sunak could make his leadership rival defence secretary.

The Navy reservist was briefly defence secretary during Mr Johnson’s interim government so would be taking her old job back.

Theresa May

Giving the former PM an important cabinet role could be a show of unity across all parts of the party.

One of the most experienced MPs in government, Ms May would be seen as a strong hand to steer the ship on Ukraine and China.

 Conservative MP Michael Gove attends Britain's Conservative Party's annual conference in Birmingham

Levelling Up Secretary

Michael Gove

On the back benches for the first time in a very long while, the Tory grandee said he will be standing down at the next election.

But if offered his old job back after being fired by Mr Johnson, it is unlikely he would turn it down.

Giving Mr Gove the job would be tactical as he has not been shy in criticising the government from the backbenches.

Kemi Badenoch

Handing Ms Badenoch the levelling up brief would bring Mr Sunak kudos from the right of the party.

Her popularity would come in handy as the job is wide-ranging and can be controversial.

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Court confirms sacking of South Korean president who declared martial law

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Court confirms sacking of South Korean president who declared martial law

South Korea’s constitutional court has confirmed the dismissal of President Yoon Suk Yeol, who was impeached in December after declaring martial law.

His decision to send troops onto the streets led to the country’s worst political crisis in decades.

The court ruled to uphold the impeachment saying the conservative leader “violated his duty as commander-in-chief by mobilising troops” when he declared martial law.

The president was also said to have taken actions “beyond the powers provided in the constitution”.

Demonstrators who stayed overnight near the constitutional court wait for the start of a rally calling for the president to step down. Pic: AP
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Demonstrators stayed overnight near the constitutional court. Pic: AP

Supporters and opponents of the president gathered in their thousands in central Seoul as they awaited the ruling.

The 64-year-old shocked MPs, the public and international allies in early December when he declared martial law, meaning all existing laws regarding civilians were suspended in place of military law.

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More on South Korea

The Constitutional Court is under heavy police security guard ahead of the announcement of the impeachment trial. Pic: AP
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The court was under heavy police security guard ahead of the announcement. Pic: AP

After suddenly declaring martial law, Mr Yoon sent hundreds of soldiers and police officers to the National Assembly.

He has argued that he sought to maintain order, but some senior military and police officers sent there have told hearings and investigators that Mr Yoon ordered them to drag out politicians to prevent an assembly vote on his decree.

His presidential powers were suspended when the opposition-dominated assembly voted to impeach him on 14 December, accusing him of rebellion.

The unanimous verdict to uphold parliament’s impeachment and remove Mr Yoon from office required the support of at least six of the court’s eight justices.

South Korea must hold a national election within two months to find a new leader.

Lee Jae-myung, leader of the main liberal opposition Democratic Party, is the early favourite to become the country’s next president, according to surveys.

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Stock markets suffer sharp drops after Donald Trump announces sweeping tariffs

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Stock markets suffer sharp drops after Donald Trump announces sweeping tariffs

Stock markets around the world fell on Thursday after Donald Trump announced sweeping tariffs – with some economists now fearing a recession.

The US president announced tariffs for almost every country – including 10% rates on imports from the UK – on Wednesday evening, sending financial markets reeling.

While the UK’s FTSE 100 closed down 1.55% and the continent’s STOXX Europe 600 index was down 2.67% as of 5.30pm, it was American traders who were hit the most.

Trump tariffs latest: US stock markets tumble

All three of the US’s major markets opened to sharp losses on Thursday morning.

A person works on the floor at the New York Stock Exchange in New York, Monday, March 31, 2025. Pic: AP
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The S&P 500 is set for its worst day of trading since the COVID-19 pandemic. File pic: AP

By 8.30pm UK time (3.30pm EST), The Dow Jones Industrial Average was down 3.7%, the S&P 500 opened with a drop of 4.4%, and the Nasdaq composite was down 5.6%.

Compared to their values when Donald Trump was inaugurated, the three markets were down around 5.6%, 8.7% and 14.4%, respectively, according to LSEG.

More on Donald Trump

Worst one-day losses since COVID

As Wall Street trading ended at 9pm in the UK, two indexes had suffered their worst one-day losses since the COVID-19 pandemic.

The S&P 500 fell 4.85%, the Nasdaq dropped 6%, and the Dow Jones fell 4%.

It marks Nasdaq’s biggest daily percentage drop since March 2020 at the start of COVID, and the largest drop for the Dow Jones since June 2020.

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The latest numbers on tariffs

‘Trust in President Trump’

White House press secretary Karoline Leavitt told CNN earlier in the day that Mr Trump was “doubling down on his proven economic formula from his first term”.

“To anyone on Wall Street this morning, I would say trust in President Trump,” she told the broadcaster, adding: “This is indeed a national emergency… and it’s about time we have a president who actually does something about it.”

Later, the US president told reporters as he left the White House that “I think it’s going very well,” adding: “The markets are going to boom, the stock is going to boom, the country is going to boom.”

He later said on Air Force One that the UK is “happy” with its tariff – the lowest possible levy of 10% – and added he would be open to negotiations if other countries “offer something phenomenal”.

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How is the world reacting to Trump’s tariffs?

Economist warns of ‘spiral of doom’

The turbulence in the markets from Mr Trump’s tariffs “just left everybody in shock”, Garrett Melson, portfolio strategist at Natixis Investment Managers Solutions in Boston, told Reuters.

He added that the economy could go into recession as a result, saying that “a lot of the pain, will probably most acutely be felt in the US and that certainly would weigh on broader global growth as well”.

Meanwhile, chief investment officer at St James’s Place Justin Onuekwusi said that international retaliation is likely, even as “it’s clear countries will think about how to retaliate in a politically astute way”.

He warned: “Significant retaliation could lead to a tariff ‘spiral of doom’ that could be the growth shock that drags us into recession.”

Read more:
Do Trump’s ‘Liberation Day’ tariff numbers add up?

Tariffs about something more than economics: power

It comes as the UK government published a long list of US products that could be subject to reciprocal tariffs – including golf clubs and golf balls.

Running to more than 400 pages, the list is part of a four-week-long consultation with British businesses and suggests whiskey, jeans, livestock, and chemical components.

Meanwhile, Prime Minister Sir Keir Starmer said on Thursday that the US president had launched a “new era” for global trade and that the UK will respond with “cool and calm heads”.

It also comes as Canadian Prime Minister Mark Carney announced a 25% tariff on all American-imported vehicles that are not compliant with the US-Mexico-Canada trade deal.

He added: “The 80-year period when the United States embraced the mantle of global economic leadership, when it forged alliances rooted in trust and mutual respect and championed the free and open exchange of goods and services, is over. This is a tragedy.”

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Donald Trump announces sweeping global trade tariffs – including 10% on UK imports

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Donald Trump announces sweeping global trade tariffs - including 10% on UK imports

Donald Trump has announced a 10% trade tariff on all imports from the UK – as he unleashed sweeping tariffs across the globe.

Speaking at a White House event entitled “Make America Wealthy Again”, the president held up a chart detailing the worst offenders – which also showed the new tariffs the US would be imposing.

“This is Liberation Day,” he told a cheering audience of supporters, while hitting out at foreign “cheaters”.

Follow live: Trump tariffs latest

He claimed “trillions” of dollars from the “reciprocal” levies he was imposing on others’ trade barriers would provide relief for the US taxpayer and restore US jobs and factories.

Mr Trump said the US has been “looted, pillaged, raped, plundered” by other nations.

President Donald Trump holds a signed executive order during an event to announce new tariffs in the Rose Garden of the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Evan Vucci)
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Pic: AP

His first tariff announcement was a 25% duty on all car imports from midnight – 5am on Thursday, UK time.

Mr Trump confirmed the European Union would face a 20% reciprocal tariff on all other imports. China’s rate was set at 34%.

The UK’s rate of 10% was perhaps a shot across the bows over the country’s 20% VAT rate, though the president’s board suggested a 10% tariff imbalance between the two nations.

It was also confirmed that further US tariffs were planned on some individual sectors including semiconductors, pharmaceuticals and critical mineral imports.

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Trump’s tariffs explained

The ramping up of duties promises to be painful for the global economy. Tariffs on steel and aluminium are already in effect.

The UK government signalled there would be no immediate retaliation.

Business and Trade Secretary Jonathan Reynolds said: “We will always act in the best interests of UK businesses and consumers. That’s why, throughout the last few weeks, the government has been fully focused on negotiating an economic deal with the United States that strengthens our existing fair and balanced trading relationship.

“The US is our closest ally, so our approach is to remain calm and committed to doing this deal, which we hope will mitigate the impact of what has been announced today.

“We have a range of tools at our disposal and we will not hesitate to act. We will continue to engage with UK businesses including on their assessment of the impact of any further steps we take.

“Nobody wants a trade war and our intention remains to secure a deal. But nothing is off the table and the government will do everything necessary to defend the UK’s national interest.”

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Who showed up for Trump’s tariff address?

The EU has pledged to retaliate, which is a problem for Northern Ireland.

Should that scenario play out, the region faces the prospect of rising prices because all its imports are tied to EU rules under post-Brexit trading arrangements.

It means US goods shipped to Northern Ireland would be subject to the EU’s reprisals.

The impact of a trade war would be expected to be widely negative, with tit-for-tat tariffs risking job losses, a ramping up of prices and cooling of global trade.

Research for the Institute for Public Policy Research has suggested more than 25,000 direct jobs in the UK car manufacturing industry alone could be at risk from the tariffs on car exports to the US.

The Society of Motor Manufacturers and Traders (SMMT) had said the tariff costs could not be absorbed by manufacturers and may lead to a review of output.

The tariffs now on UK exports pose a big risk to growth and the so-called headroom Chancellor Rachel Reeves was forced to restore to the public finances at the spring statement, risking further spending cuts or tax rises ahead to meet her fiscal rules.

Read more:
What do Trump’s tariffs mean for the UK?
The rewards and risks for US as trade war intensifies

A member of the Office for Budget Responsibility (OBR), David Miles, told MPs on Tuesday that US tariffs at 20% or 25% maintained on the UK for five years would “knock out all the headroom the government currently has”.

But he added that a “very limited tariff war” that the UK stays out of could be “mildly positive”.

He said: “There’s a bit of trade that will get diverted to the UK, and some of the exports from China, for example, that would have gone to the US, they’ll be looking for a home for them in the rest of the world.

“And stuff would be available in the UK a bit cheaper than otherwise would have been. So there is one, not central scenario at all, which is very, very mildly potentially positive to the UK. All the other ones which involve the UK facing tariffs are negative, and they’re negative to very different extents.”

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